Breaking News Instant updates and real-time market news.

Large U.S. banks are rushing to launch websites and mobile apps to make getting a mortgage quicker and easier as home lending activity slows, Reuters reports. Lenders have been investing in digital tools to cut costs, eliminate error-prone paperwork, and appeal to younger home purchasers, the report says. Bank of America (BAC) has spent $1B on its digital bank services over the last six years and rolled out its lineup of techy mortgage products last week, while Wells Fargo (WFC) launched its website and app service during Q1 and JPMorgan (JPM) intends to launch its offering later in 2018, the report says. Reference Link

Bank of America is the best of the 'big four' U.S. banks, says BMO Capital

BMO Capital analyst James Fotheringham kept his Market Perform rating and $34 price target on Bank of America (BAC) after its in-line Q1 earnings but raised his FY18 EPS view to $2.62 from $2.59 and FY19 view to $3.18 from $3.12. Fotheringham says than in contrast, he lowered earnings forecasts for JPMorgan (JPM), Wells Fargo (WFC), and Citigroup (C) because of higher costs and lower revenues, but Bank of America's better than expected net interest income rise justifies his view of the bank as the "best of the bunch". The analyst also notes the bank's more favorable valuation trading at a below-average two-year-forward P/E multiple despite his forecast of double the core earnings growth rate of Bank of America's peers.

04/11/18

04/11/18UPGRADE

On The Fly: Top five analyst upgrades

Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Citi (C) upgraded to Buy from Hold at HSBC with analyst Alevizos Alevizakos saying he sees improved profitability in the near-term, driven by U.S. dollar depreciation and tax reform, re-rating the shares higher. 2. BHP Billiton (BHP) upgraded to Buy from Hold at Deutsche Bank with analyst Liam Fitzpatrick saying the shares offer compelling value at current levels. 3. Mattel (MAT) upgraded to Hold from Underperform at Jefferies with analyst Stephanie Wissink saying the company's near-term risks are largely known and priced into the shares. 4. AeroVironment (AVAV) upgraded to Buy from Hold at Stifel with analyst Joseph DeNardi saying he sees the company benefiting from tailwinds including an improving defense budget environment, a heightened global threat environment, and "as strong a pipeline of opportunities" as he has seen in ten years. 5. Helmerich & Payne (HP) upgraded to Market Perform from Underperform at Wells Fargo with analyst Judson Bailey citing strength in the land rig market. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

04/11/18

HSBC

04/11/18UPGRADETarget $85HSBCBuy

Citi upgraded to Buy from Hold at HSBC

HSBC analyst Alevizos Alevizakos upgraded Citi to Buy and raised his price target for the shares to $85 from $82. The analyst sees improved profitability in the near-term, driven by U.S. dollar depreciation and tax reform, re-rating the shares higher. He believes the market is not fully appreciating Citi's leading credit card franchise and its growth prospects in Mexico.

04/05/18

04/05/18UPGRADE

On The Fly: Top five analyst upgrades

Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Merck (MRK) upgraded to Overweight from Equal Weight at Barclays with analyst Geoffrey Meacham saying he believes the company will continue to take share in first-line lung cancer, driven by positive KN-189 and KN-042 data. 2. Acuity Brands (AYI) upgraded to Outperform from Market Perform at JMP Securities with analyst Joseph Osha saying he believes the stock is finally trading at a "reasonable valuation based on reasonable expectations." 3. AMD (AMD) upgraded to Buy from Hold at Stifel with analyst Kevin Cassidy citing valuation and the company's margin expansion potential. 4. Tiffany (TIF) upgraded to Buy from Hold at Loop Capital with analyst Laura Champine saying her initial meeting with the company's new CEO Alessandro Bogliogo added to her confidence. 5. Citi (C) and Wells Fargo (WFC) were upgraded to Buy from Neutral at UBS. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

USBU.S. Bancorp

$50.24

-0.45 (-0.89%)

03/26/18

BARD

03/26/18UPGRADETarget $66BARDOutperform

U.S. Bancorp upgraded to Outperform at Baird

As reported previously, Baird analyst David George upgraded U.S. Bancorp to Outperform from Neutral. The analyst cited its in-line valuation while calling it an above average bank. He noted its shares have declined while the company expects to deliver positive operating leverage in the second half 2018, George, who also noted that its returns remain best-in-class, has a $66 price target on U.S. Bancorp shares.

04/03/18

EDJN

04/03/18DOWNGRADEEDJNHold

U.S. Bancorp downgraded to Hold from Buy at Edward Jones

04/03/18

04/03/18DOWNGRADEHold

U.S. Bancorp downgraded to Hold at Edward Jones

As previously reported, Edward Jones analyst Kyle Sanders downgraded U.S. Bancorp to Hold from Buy given his outlook for slower profit growth relative to rival banks over the next few years. While the analyst expects U.S. Bancorp to benefit from a solid economy a rising interest rates, he believes some of its competitors are better positioned for the current environment.

04/04/18

DBAB

04/04/18UPGRADETarget $50DBABBuy

Citizens Financial upgraded to Buy with $50 target at Deutsche Bank

Deutsche Bank analyst Matthew O'Connor last night upgraded Citizens Financial Group (CFG) to Buy with an unchanged price target of $50. The analyst upgrades the stock following the recent pullback ahead of the Q1 earnings season. U.S. Bancorp (USB) remains his top pick among U.S. Banks.

KeyBanc analyst Edward Yruma notes that the push to provide consumer-driven and lower-cost healthcare continues its push into retail as The Wall Street Journal reports that Walmart (WMT) is in discussions to acquire or develop a closer partnership Humana (HUM). This is on the heels of Amazon's (AMZN) recent JV with Berkshire Hathaway (BRK.A; BRK.B) and JPMorgan (JPM) to provide healthcare for employees, he adds. The analyst views any efforts to strengthen the in-store healthcare offering as a positive for Walmart's stock.

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Alphabet (GOOG, GOOGL), Apple (AAPL), and Facebook (FB) were initiated with a Buy at Monness Crespi. 2. Caterpillar (CAT) initiated with a Buy at Buckingham. 3. JPMorgan (JPM) initiated with a Hold at HSBC. 4. eBay (EBAY) assumed with an Overweight at KeyBanc. 5. Ericsson (ERIC) initiated with a Hold at Berenberg. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.

BMO Capital analyst James Fotheringham says that the recent near-10% pullback in the Bank of America stock price provides investors with a buying opportunity. The analyst contends that the bank's stock trades much more closely in line with short term interest rates rather than the 10-year and believes that its net interest margins will prove to be "insensitive" to lower yields on the benchmark as well as higher LIBOR-OIS spreads. Fotheringham keeps his $34 price target and Market Perform rating on Bank of America, adding that its current two-year-forward P/E valuation multiple is close to its long-term historical average.

Morgan Stanley analyst Betsy Graseck said she had expected an easier stress test from the Federal Reserve but that the 2018 CCAR test actually seems tougher than last year, given the more intense recessions and lower asset prices modeled in it. A tougher test makes her less optimistic on her strong payout growth expectations, said Graseck, who sees Bank of America (BAC), JPMorgan (JPM) and Citi (C) as best positioned to "weather the storm" and increase payouts given their resilient balance sheets and significant excess capital. She sees Goldman Sachs (GS), which recently cut buybacks, as at risk from a tougher test, which likely weighs on the bank's 2018 ask, Graseck added.

01/31/18

DBAB

01/31/18NO CHANGETarget $15DBABSell

GE likely to be dropped from Dow 30 index, says Deutsche Bank

General Electric (GE) is likely to be dropped from the Dow Jones Industrial Average after being in the index of 30 companies for over 110 years as an original member since 1896, Deutsche Bank analyst John Inch tells investors in a research note. The chances that GE could be removed from the Dow are increasing as the company continues to face "substantial challenges," the analyst writes. These include "earnings and cash pressure, tough global power generation markets, aggressive downsizing, shrinking its portfolio, management shake-up and SEC investigations," Inch argues. He sees "headline risk" as the most significant risk factor if GE were to be dropped from the Dow, "potentially amplified by GE's high mix of retail investors." Inch notes that the last major Dow shakeup occurred in September 2003, when American Airlines (AAL), Bank of America (BAC) and Hewlett Packard (HPQ) were removed and Goldman Sachs (GS), Nike (NKE) and Verizon (VZ) were added. Inch has a Sell rating on General Electric with a $15 price target. The shares closed yesterday down 33c to $15.95.

GSGoldman Sachs

$251.52

-2.67 (-1.05%)

04/18/18

ARGS

04/18/18NO CHANGEARGSHold

Goldman Sachs earnings inherently 'volatile', says Argus

Argus analyst Stephen Biggar keeps his Hold rating on Goldman Sachs after its Q1 earnings beat, saying the company's as "strength in underwriting, equities trading and securities lending offset weaker financial advisory revenue". Biggar further notes that as a "capital markets pure play", Goldman Sachs has move volatile earnings than other large global banks and is more dependent on client activity. The analyst further cites Q1 outperformance as a result of a "ripe environment" for Goldman's business mix, but does not expect market volatility to continue.

04/18/18

OPCO

04/18/18NO CHANGETarget $308OPCOOutperform

Goldman Sachs price target raised to $308 from $280 at Oppenheimer

Oppenheimer analyst Chris Kotowski raised his price target for Goldman Sachs to $308 from $280 after the company posted a "strong" rebound from last year's dismal quarter and posted a significant upside surprise. The analyst reiterates an Outperform rating on the shares.

04/18/18

BMOC

04/18/18NO CHANGETarget $245BMOCMarket Perform

Goldman Sachs price target raised to $245 from $221 at BMO Capital

BMO Capital analyst James Fotheringham raised his price target on Goldman Sachs (GS) to $245 after the company's Q1 revenue beat, saying it is "back to stealing market share in its core business" as its FICC - fixed income, currencies, and commodities - trading rose 23% vs. a 4% decline for peers. The analyst adds that while Goldman Sachs will continue to experience positive operating leverage, its valuation relative to Morgan Stanley (MS) cannot be justified, favoring the latter based on its greater exposure to higher-multiple asset management businesses. Fotheringham keeps his Market Perform rating on Goldman Sachs.

04/18/18

FBCO

04/18/18NO CHANGETarget $280FBCONeutral

Goldman Sachs price target raised to $280 from $274 at Credit Suisse

Credit Suisse analyst Susan Roth Katzke raised her price target for Goldman Sachs to $280 from $274 following quarterly results. The analyst reiterates a Neutral rating on the shares.

WFCWells Fargo

$52.49

0.94 (1.82%)

04/16/18

BARD

04/16/18NO CHANGETarget $62BARDOutperform

Lower expectations limit Wells Fargo downside, says Baird

Baird analyst David George said Wells Fargo reported messy Q1 results, but lowered expectations should limit the downside in the shares. The analyst said core fees were weak, but expenses were in line as was loan growth. George maintained his Outperform rating and $62 price target on Wells Fargo shares.

04/16/18

NOMU

04/16/18NO CHANGETarget $68NOMUBuy

Wells Fargo earnings underwhelming, but not a value trap, says Nomura

Nomura Instinet analyst Bill Carcache lowered his price target for Wells Fargo to $68 from $72 saying Friday's earnings results were "underwhelming" as the company reported softer revenue growth. The analyst, however, continues to believe that shares of Wells Fargo are "not a value trap." Shareholders "able to weather the current storm" will be rewarded with 10% earnings growth, mid- to high-teens return on tangible equity, and a multiple rerating when the market regains confidence, Carcache tells investors in a research note. He keeps a Buy rating on the shares.

Wells Fargo analyst Mike Mayo says rising volatility could push his above consensus estimates for Goldman Sachs (GS) even higher. Goldman could be one of the biggest volatility beneficiaries, Mayo tells investors in a research note. He notes Goldman generates the highest contribution from trading among the large U.S. banks, with Morgan Stanley (MS) being second. The analyst keeps an Outperform rating on Goldman shares with a $330 price target.

BMO Capital analyst James Fotheringham kept his Outperform rating and $72 price target on Morgan Stanley after its Q1 earnings beat while also raising his FY18 EPS view to $4.78 from $4.51. The analyst cites his expectations of higher trading revenues and also points to lower EPS volatility relative to that Goldman Sachs (GS), even though Morgan Stanley's multiple of 9.7-times two-year-forward PE is below Goldman's 10-times.